Talent Retention Strategies: The Power of Learning and Workforce Education

Talent retention continues to take center stage in the retail industry and for good reason.

Retailers are experiencing higher year-over-year turnover rates. For instance, the turnover rate for hourly in-store positions reached 75.8 percent, up from 68 percent in 2021. Furthermore, nearly half of U.S. frontline retail employees and two-thirds of frontline managers report considering leaving their jobs in the next few months.

This trend is having a profound impact on retail companies across the nation as they struggle to retain top talent. At the same time, this movement has also exposed outdated aspects of traditional retention strategies that require reevaluation, particularly in learning and workforce education.

While workforce education is only one component of a comprehensive employee retention strategy, it can be a critical driver of success. Here are three ways in which investing in a modern approach to learning and workforce education enables forward-thinking retail companies to retain their top talent:

1. Career paths: Pave the way with clear paths for career advancement.

Education is a powerful, proven way to enable career advancement. Employees stay with companies when they know the organization is committed to their professional development and provides education opportunities that lead to tangible career outcomes. A recent report shows that the top reason people leave their retail positions is for a better opportunity or promotion. Beyond offering competitive compensation packages, retailers need to ensure they're giving employees clear paths to advancement.

For instance, one of the largest telecommunications authorized retailers in the U.S. created a workforce education solution to attract high-quality frontline sales candidates and boost employee retention. Offering access to 100-plus undergraduate degree programs, the solution has proven to be highly effective. Results include an 89 percent year one return on investment based on reduced turnover and onboarding costs and a 3x higher retention for participants. Additionally, three out of four participants agree they're more likely to continue working at the organization.

When learning paths are tailored to business goals, employees are able to work towards a meaningful credential or degree, while also applying what they learn immediately to their job. Career paths can be designed for a variety of roles, incorporating a mix of learning types — including degree programs, certifications and short courses — to meet employees where they are in their learning journey.

2. Company culture: Foster an environment that employees want to be a part of.

A healthy learning culture leads to committed employees and improves company performance. A recent report revealed that 94 percent of employees said investment in training and education is one of the major reasons they would decide to stay in a role for longer.

Providing your people with quality education and learning opportunities demonstrates that they're appreciated and their career development is a priority. As an employer, you also can extend education offerings to employees’ family members and/or dependents. This further reinforces a long-term commitment to supporting your people and their communities and has an outsized impact on retention for the employee who is able to provide for their family in this way.

Developing a dynamic, positive learning culture within your organization is a strategic decision that supports your people’s growth and, ultimately, helps to retain them.

3. Employee engagement: Drive long-term outcomes that keep your people engaged.

There are numerous benefits to having more engaged employees, with better retention at the top of that list. In a recent survey, 80 percent of employees said that better access to learning and education opportunities would help them to feel more engaged on the job.

However, retaining employees isn’t just about keeping them around. It’s also about making sure that they feel engaged and fulfilled at work so that they, in turn, can deliver top-tier work for their organization. That’s where workforce education makes a positive difference. When companies provide people with opportunities to grow their skills and up-level their careers, it drives stronger engagement, improved performance, greater confidence, and keeps them invested in their work.

From a strategic perspective, keeping employees engaged leads to improved talent retention rates while strengthening your internal pipeline for future roles as well.

Good talent craves personal and professional growth. By providing quality learning and education opportunities, your best people will stay with you longer and create even greater impact. With a modern workforce education strategy, retailers are set to boost retention, nurture careers, and achieve success in today’s changing world.

Stephen Chu is the chief legal and people officer at InStride, the Strategic Enterprise Education partner of choice for businesses creating sustainable advantage and social impact through the continuous growth of their people.